FLOCurrency provides a collection of aligned groups the ability to offer rewards to individuals who perform tasks on their behalf.
We create tasks that users can perform to earn points.
Users can redeem those points for goods and services in our store (AKA reserve) or trade points amongst themselves.
The goods and services in our store are donated to us by our “backers” who want the tasks we create completed.
When people spend points in our store, we destroy the points so that we can create more of them in the future.
Pricing items in the store is one of our only mechanism for regulating the value of our points in relation to goods in the external market. For example, if we price Bitcoins at their market price in dollars, then one point’s value is approximately equivalent to a US dollar. If we price Bitcoins at twice as many points as US dollars, then our points are worth half a US dollar. Since many of the items in our store are in-kind donations without a clear market value in US dollars, the value of points becomes more complicated. We love complicated, because it means we’ll learn a lot through our experiences. 🙂
The quantity, quality and prices of items in our reserve signals how much confidence users should have in FLOCurrency.org. If we have a lot of items in our store and our prices don’t fluctuate much, then users should be confident in their own capacity to make good decisions when it comes to planning when to purchase items. However, if we have a only a few items in our store and our prices do fluctuate, user will likely not feel confident in their capacity to make good decisions, and that will decrease the value of our points.
We use gaming software to create tasks through which people can earn points and badges. We take the job of structure tasks very seriously, because that’s a primary mechanism through which we regulate the quantity of points in the system and it’s also the way we get our users to create value for our backers. The more value our users create, the more our backers will give, and the more incentives there will be for users to complete tasks in the future.
Our pricing of tasks is very important because if we price them too low, people won’t complete the tasks. If we price them too high, people will complete them quickly but won’t create enough value for our backers, who won’t continue to offer rewards that make the points valuable.
Without rewards coming into the reserve, people’s confidence in the persistent value of FLO currency will decrease and will try to cash out their points as quickly as possible, creating a “run” on our “bank”, which could lead to it being emptied of all goods and a lot of people with points that they can no longer spend in the reserve, making their value in other marketplaces questionable. We’ll do our best to ensure this doesn’t happen. 🙂
Now is a great time to join FLOCurrency.org and earn some points! Register Now